EPFO Can Park Funds in Fixed Deposits, Certificate of Deposits: CBT

The Central Board of Trustees (CBT) allowed retirement fund body – Employee provident Fund Organisation (EPFO) to put its funds in Fixed Deposits up to five years, short-term securities and Certificate of Deposits of public sector banks. However, this approval from CBT will have to be cleared by the government.

At present EPFO, has a corpus of Rs.3.5 lakh crore, and it needs to increase its return on investments, for the subscribers to earn a higher rate of interest. This proposal provides greater freedom to EPFO invest in additional financial instruments and earn better returns there of.